Your company has thrived over the course of your life, and you want to leave it to your family. You want your children to have the financial security that it provides. You're also just proud of what you built, and you don't want to shut it all down just because it's time to retire.
Estate planning is very important for business owners. As you create a succession plan, here are a few questions you need to ask:
- Are your heirs actually interested in running the business? Do they want it as much as you want to leave it to them?
- Do you need to split it up between multiple children? You're probably not going to just divide ownership and roles evenly. Make sure you set out a clear plan for everyone's jobs within the company.
- Do your heirs have the skills and abilities they need to take it over? Hopefully, you can get started long before you give them the business, working with them and teaching them the skills they need.
- How long should you stay? Your succession plan does need to address what happens if you pass away unexpectedly, but you also want to think about how long you may stay in the company. Once you retire, you need to put that plan into action, even if you are nowhere near the end of your life.
Succession planning is important and complex. Ideally, you want to ask these questions and start planning as early as you can. Make sure you know what steps to take and how to set things up to put your family in an excellent position for the future.